Journal article
The cost of leader personal financial insecurity: implications for adaptive team performance
Personnel psychology, Vol.77(3), pp.1087-1128
09/01/2024
DOI: 10.1111/peps.12606
Abstract
In light of a global pandemic, rising inflation, and stock market uncertainty, many across the globe are experiencing financial insecurity. We build on an emerging line of research to explore the mechanisms through which leaders' personal financial insecurity impacts the teams they lead. We draw on compensatory control theory to theorize that leaders' personal financial insecurity has a negative indirect effect on adaptive team performance because more insecurity is associated with less perceived personal control, to which leaders respond by implementing a more hierarchical decision-making authority structure in their teams. Integrating the social identity theory of leadership, we theorize that this effect is stronger when the leaders are more prototypical of their team. Evidence from three multi-wave, multi-source field studies including leaders and their teams and an online experiment supports our model. By uncovering how a leader's perceived financial state impacts those they lead, our work adds to the growing bottom-line case for why organizations should care about supporting their employees' financial health.
Details
- Title: Subtitle
- The cost of leader personal financial insecurity: implications for adaptive team performance
- Creators
- Trevor M Spoelma - University of New MexicoWen Wu - Beijing Jiaotong UniversityShaoxue (Eric) Wu - Universiti Sains Malaysia
- Resource Type
- Journal article
- Publication Details
- Personnel psychology, Vol.77(3), pp.1087-1128
- DOI
- 10.1111/peps.12606
- ISSN
- 0031-5826
- eISSN
- 1744-6570
- Publisher
- Wiley
- Number of pages
- 42
- Language
- English
- Date published
- 09/01/2024
- Academic Unit
- Management and Entrepreneurship
- Record Identifier
- 9984936840702771
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